The Daily Update: Biden Goes Large !!

Last night Joe Biden announced the details of a massive USD1.9tn stimulus rescue package designed to support both businesses and households through the ongoing pandemic. Biden described the moment as a ‘crisis of deep human suffering’. The proposal to be put before Congress, called the American Rescue Plan, includes several familiar stimulus measures already in place in the hope the additional help will ease the burden on the US economy.

Biden called for a top up of $1,400 to most Americans on top of the $600 they received last month. Increasing unemployment benefit to $400 a week until September as well as setting the minimum wage for federal workers at $15 an hour. Child tax credit to be fully refundable for the year and increasing the credit to $3,000 per child. There would be USD350bn in government and state aid. USD170bn towards schools and higher education. National Covid testing would get USD50bn as well as another USD20bn going towards a state-wide vaccine program.

Biden will roll out the first spending initiatives within months of him becoming president. There will then be a second bill aimed at Biden’s longer term goals, such as combating climate change, advancing racial equity, reforming infrastructure, and job creation.

Speaking from Delaware, Biden said ‘During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a pay check’ adding ‘There is real pain overwhelming the real economy’. He recognises both the ambition and the huge cost of the proposals, however, believes that the investment will pay dividends for the US down the road. ‘I know what I just described does not come cheaply, but failure to do so will cost us dearly’, however, ‘The consensus among leading economists is, we simply cannot afford not to do what I’m proposing’.